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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (10782)	10/28/1999 4:28:00 PM
From: Bindusagar Reddy	Respond to of 21876

GVTucker,thanks for the names, as you can see there are very few companies that are this size growing rapidly. Home Depot is a retailer with super growth. What amazed me was that despite a lackluster growth of a 20% revenue BCS division the overall growth was great. If you spin-off that division, rest of the company grew from 23 billion to 30 billion an astounding 30% growth rate. My friend GV, bottom line is LU is growing very fast in all segments of Telecom with broadest portfolio of products in Wireless, Wireline, Optical, Data and Services. If you listen to CC of QWEST and WorldCom, they are increasing the spending exponentially over the next 12-24 months. That bodes well for LU and other vendors. LU is clearly an undisputed leader in this space with fantastic intellectual capital and management depth with financial strength. Anybody betting against LU should see a psychiatrist immediately. I wouldn't bet against even Ericssons, Alcatels of the world. As they will do very well over the next 5 years. Best wishes, BR

To: GVTucker who wrote (10782)	10/28/1999 5:05:00 PM
From: Bindusagar Reddy	Respond to of 21876

<Valuation is something that you don't even address.>. That is exactly my point. LU added as much sales as CSCO' last 3 quarters of revenue and yet CISCO is valued at 230 Billion and LU is valued at 190 billion. Yes, it is all about valuation. LU is way undervalued to CISCO and NT. Price/Sales ratio of 5 vs P/S ratio of 19 for CISCO. Since CISCO has higher margins and growth rates, it may be worth 10 times sales. But LU should trade at least 7-8 times sales. LU's market value should be 304 billions today. Again this is a relative valuation. I enjoy healthy discussion as well. Regards, BR